Worthing Borough Council

Quick Links:

Worthing BC Procurement Strategy

01903 221069

procurement@worthing.gov.uk

1. Introduction

This is the Procurement Strategy for Worthing Borough Council and applies to the organisation as a whole and seeks to ensure that good procurement practice is applied consistently throughout the Council.

The Strategy takes account of the recommendations made by the Byatt report, "Delivering Better Services for Citizens" and the issues and requirements of the National Procurement Strategy for Local Government issued by the Office of the Deputy Prime Minister October 2003.

This Strategy also reflects the outcome of the Joint Best Value Review of Procurement completed in July 2004 in conjunction with Adur District Council and the Improvement/Action Plan agreed by a meeting of the Cabinet in September 2004.

The Strategy sets out the link between the Councils Key Improvement Priorities, its Community Strategy and Performance Targets.

The term "Procurement" is defined in the National Procurement Strategy as follows;

"Procurement" is the process of acquiring goods, works and services, covering both acquisition from third parties and from in-house providers. The process spans the whole cycle from identification of needs, through to the end of a services contract or the end of the useful life of an asset. It involves options appraisal and the critical "make or buy" decision, which may result in the provision of services in-house in appropriate circumstances.
In the context of a procurement process, obtaining "best value for money" means choosing the bid that offers "the optimum combination of whole life costs and benefits to meet the customer's requirement".
This is not the lowest initial price option and requires assessing the ongoing revenue/resource costs as well as initial capital investment. The council's requirement can include social, environmental and other strategic objectives and is defined at the earliest stages of the procurement cycle. The criterion of best value for money is used at the award stage to select the bid that best meets the requirement.
Procurement is also about making choices. The choice that members make about a particular contract or form of partnering is a very clear signal of what type of authority the council wants to be and how it wants to be seen now and in the future."

The purpose of the Strategy is to communicate clearly the Councils vision for the way forward in its procurement of goods, services and works to all of the Councils staff, suppliers and stakeholders. It sets out how we will address Procurement and clearly establishes its importance to the Authority and its role in delivering the Councils Vision.

2. What are the Aims of the procurement strategy?

The aim of this local strategy is;

To ensure that procurement supports Council values and the delivery of key priorities.

To assist the Council in achieving value for money through the provision of cost effective and efficient services.

To secure commitment to good procurement from Members and officers at all levels within the organisation.

To raise the awareness of procurement in Worthing Borough Council and its potential contribution to service delivery.

To publicise the work that is required to develop and improve procurement through its agreed Action Plan.

To meet the requirements and milestones of the National Procurement Strategy.

To deliver the Improvement/Action Plan of the Joint Best Value of Procurement

3. National Procurement Strategy for Local Government

In July 2002 a Government Taskforce headed by Sir Ian Byatt produced a report titled "Delivering Better Services to Citizens" that looked in to the state of procurement skills and practice in local government in England. Its key finding was that there was a need to improve procurement practice across all local authorities. The review made 39 specific recommendations, all of which were accepted by the Government.

In response to these recommendations, the Office of the Deputy Prime Minister (ODPM) and the Local Government Association (LGA) published a National Procurement Strategy for Local Government in October 2003.

This strategy is based around a vision for Local Government procurement and has five key themes designed to make that vision a reality. The five themes are;

o Cultural Shift

o Providing Leadership and building capacity

o Partnering and collaboration

o Doing Business Electronically

o Stimulating markets and achieving community benefits.

A summary of the milestones contained in the National Procurement Strategy are attached at Appendix A.

4. Procurement Responsibility

The National Procurement Strategy for Local Government advocates that the strategic importance of procurement should be reflected in an executive portfolio - creating a Member " Procurement Champion". The procurement champion is a change agent for procurement.
In Worthing Borough Council responsibility for procurement rests at Member level with the Cabinet who have agreed the appointment of a Member Champion. This is currently the Cabinet member for Resources.

At Officer level, responsibility for procurement rests with the Executive Head of Technical Services who is a member of the Partnership Management Board. Reporting to the Executive Head is the Business Services Manager who has responsibility for day-to-day procurement activities excluding property related procurement. Responsibility for construction and property related procurement is the responsibility of the Executive Head of Technical Services.

Procurement should be seen in the context of the Council's Vision, its Community Strategy and the overall Key Improvement priorities and performance targets.

Procurement decisions will need to be taken in light of the broader outcomes that the Council is trying to achieve and not entirely focused on price alone.

These broad objectives are supported by detailed service plans, which describe how the different Sections and Departments of Worthing Borough Council will contribute to the delivery of these goals.

5. The Council's Vision Statement

In June 2004 a new Council was elected and the controlling Conservative Group set out a Vision for the future of the Town.

THE VISION

"For Worthing to be a thriving Borough where people want to live, work and invest"

In February 2005 the Council produced its first Corporate Plan.
In order to achieve the Vision for Worthing to be thriving Borough where people want to live, work and invest, the Council has established a number of values:

THE COUNCIL'S VALUES

· Listen to, and be accountable to, the people of Worthing

· Manage the Council's resources effectively and efficiently

· Aim for an attractive and sustainable environment

· Support and develop a strong business community

· Enhance the quality of life for all citizens

· Ensure a sufficient supply of affordable and quality housing

· Positively support the voluntary sector

· Develop strategic partnerships with other local authorities and inward investors.

The Corporate Plan sets out a number of improvements and other priorities, which the Council and its partners have identified. How the Council procures can make a significant contribution to the achievement of these priorities.

6. Best Practice Procurement

Best practice guidance on procurement is issued by a number of authoritative bodies and is available from the following bodies and from the Council's own qualified staff;

· Society of Procurement Officers in Local Government (SOPO)
· Chartered Institute of Purchasing & Supply (CIPS)
· Chartered Institute of Public Finance & accountancy (CIPFA)
· The Office of Government Commerce (OGC)
· The Improvement & Development Agency (I&DeA)

7. Current Arrangements in Worthing

The Council has clearly defined rules that set out how we procure goods, services and works. These are contained in our Standing Orders and Financial Regulations. In addition to these rules, the Council must comply with EC Public Procurement rules for major procurement projects over a given financial threshold.

Procurement in Worthing is decentralised to each Directorate but guidance on best practice is available from the Business Services Section. The role of the Business Services Section is to offer advice on procurement matters and to promote standardisation and use of corporate/consortia contracts and to prepare quotations/tenders for Departments. The procurement of construction and property related services is carried out by the Techical Services Section.

The Executive Head of Legal & Democratic Services is responsible for the implementation of the procurement strategy.

Expenditure
In 2007/8 the Councils total capital and revenue expenditure for works, supplies and services was £15.3 million. During this period approximately 15000 invoices were received and processed for payment.

The table below shows the expenditure analysis and transaction profile of this expenditure.

Spend per annum £15.3m
Number of suppliers 2,567
Invoices per annum 23,010
Average invoice value £580

Creditor numbers
Totals 2,567
1-5 transactions 2,031
6-100 504
Over 100 32

Invoice numbers
Total 23,010
Less than £45 6,979
£45 - £100 4,418
£100 - £500 7,749
£500 - £1,000 1,645
Over £1,000 2,219

This profile has identified the need to reduce the number of invoices received and the related transaction/back office costs of doing so. Priority will be given to reducing the number of low value invoices where the transaction costs outweigh the cost of the goods/services received. The number of suppliers used by the Council will be reviewed and consideration given to reducing the numbers of suppliers to maximise economies of scale.

8. Joint Working

In July 2004 the Council undertook a joint Best Value Review of Procurement in conjunction with our neighbouring Authority, Adur District Council. The purpose of the review was to examine the current procurement practices and procedures of both Councils and to review these in light of best value, recognised best practice in procurement including the new National Procurement Strategy and each Council's corporate objectives and key tasks.

The review identified that there would be procurement advantages to the two Authorities working together in future and with other authorities to obtain greater purchasing power. In order to make use of such opportunities the authorities would need to share information on their forthcoming requirements.

An Improvement /Action Plan has been prepared for each Authority and whilst separate plans have been prepared in view of the differing needs of each Council, the Plans are linked in regard to the consideration of joint procurement opportunities. This Improvement/Action Plan is attached at Appendix B.

The Council is also involved in other areas of joint working and is a member of the following procurement groups;

. Sussex Procurement Group
· West Sussex Procurement Forum
· Local Authority Energy Buying Group South East Region (LASER)
· Sussex Stationery Consortium
· Sussex Furniture Consortium
· Office of Government Commerce
· West Sussex E-Procurement Forum

9. Procurement Principles

A number of key procurement principles have been established that are intended to support the Councils core values and strategic objectives. And these are outline below.

The Council will ensure the principles of Best Value, fairness, openness and transparency are applied to all its activities.
The Council will consider the potential for innovation, the management and balance of risk and the opportunity for new or alternative methods of service delivery.
The Council understands that resources will need to be committed to create the capacity to achieve the Improvement/Action Plan.
The Council will seek to work with others including strategic partners, public sector agencies, the voluntary sector and local authority purchasing consortia to maximise purchasing power and achieve economies of scale. This will include looking at opportunities of joint working with Adur District Council and other authorities.
All procurement procedures should be operated in a professional manner to ensure the highest standards of probity, openness and accountability. This includes compliance with the Councils Financial Regulations, Standing Orders Relating to Contracts and the EC Public Procurement regulations.
The Council supports the local business community and will encourage local businesses to offer their services to the Council.
The Council is committed to achieving efficiencies in the procurement process and to reduce the cost of each procurement transaction. This will be achieved by the Councils commitment to e-procurement and doing business electronically.
The Council will incorporate sustainability, equity, quality and safety as important criteria in the provision of all services procured.
The Council will seek to gain maximum mutual advantage and continuous improvement in relations with suppliers. The Council recognises that where contracts run for a number of years the contract should be sufficiently flexible to provide continuous improvement throughout the contract period.
The Council will ensure that major procurement projects are effectively project managed to achieve their completion on time, within budget and in accordance with the specification.
The Council understands that effective delivery of procurement requires that both Members and staff engaged in the procurement process must be suitably trained.

10. e-Procurement

The term "e-procurement" is used to describe the use of an electronic system to acquire goods, works and services from third parties.

E-procurement covers a range of activities linked to the whole procure to pay cycle. These include;

· Electronic ordering
· Electronic tendering and quotation systems
· Electronic payments
· Electronic virtual "marketplace" and web based portals
· Procurement cards for ordering and payment
· Electronic Auctions
· Payment through BACS and CHAPS

Worthing has already committed to the use of an e-procurement system for the ordering and invoicing of its commonly used goods and services. This system is integrated with its Financial Management system and we will ensure the system is available for access by all budget holders.

We will encourage our suppliers to trade with us electronically and to share the resulting benefits

The Council has set a target of 31st December 2005 in its IEG statement to increase the number of routine purchases carried out electronically. The Council will need to develop an e-procurement strategy. We will work with our suppliers to promote its adoption. We will look at ways of assisting our local small and medium businesses (SME`s) to trade with us electronically.

11. Supplier Management & Sustainability

We will seek to encourage contractors, service providers and suppliers to reduce costs and continuously improve performance. Appropriate standards, targets and monitoring procedures will be included in contracts.

The Council is committed to promoting a strong local economy and to providing high quality information and advice to local businesses (especially small and medium enterprises) and build their capacity to win and retain contracts in a way that is complaint with our Standing Orders and EC Public Procurement regulations.

We will ensure that information on how to do business with the Council is widely available and provide information on the Council's planned procurement activities.

We will ensure that consideration is given to the environmental impact of the Council's decisions and will work with our suppliers to ensure that they demonstrate a similar commitment.

We will endeavour to pay suppliers within the Councils stated policy of 30 days from receipt of invoice.

12. Major Procurement Projects

All major procurement projects will have all options considered that assess the principle options available to the Council against agreed criteria, which will include risk management. Once the most appropriate option has been agreed, all major procurements will be managed on a structured project management basis.

All proposed capital projects will follow the Councils capital appraisal and prioritisation procedures.

13. Performance Monitoring

The Council will regularly monitor the Strategy and its progress in a number of ways.

· By measuring its performance against the milestones contained in the National Procurement Strategy for Local Government. (Appendix 1)

· By measuring its performance against the Councils` Improvement/Action plan. (Appendix 2)

· By adopting a number of performance indicators that are simple to implement and maintain to assist how the Council is performing. Through its involvement with local procurement groups, the Council will consult with its neighbouring Districts/Boroughs in selecting appropriate indicators that can be used for comparison and benchmarking.

The monitoring reports will be presented to the Councils Chief Officer Management Team and to the Overview and Scrutiny Committee at intervals to be agreed.

14 Next Steps

Over the next few months, the Council will be concentrating on prioritising the next steps. These will be to secure the appropriate internal resources and capacity to enable work to start on the National Procurement Strategy requirements and our local Improvement/Action plan.

A status report will be prepared on "where are we now? " with the National Procurement Strategy milestones. Realistic targets will then be set to meet these and for those contained in the local Improvement/Action Plan which will be agreed with the Councils Overview & Scrutiny Committee and Cabinet.

A training and development programme will be carried out for the Member/Officer procurement champions and Senior staff and other Members involved in procurement and the procurement process.

We will publish a Selling Guide to The Council available in print and on our website that will be continuously updated with details of contracts awarded and their expiry dates

APPENDIX A

National Procurement Strategy for Local Government Milestones
Our vision is that by 2006 all councils will be:

Delivering significantly better quality public services that meet the needs of citizens through sustainable partnerships with a range of public, private, social enterprise and voluntary sector organisations
Operating a mixed economy of service provision, with ready access to a diverse, competitive range of suppliers providing quality services, including small firms, social enterprises, minority businesses and voluntary and community sector groups
Achieving and demonstrating continuous improvement in value for money by collaborating with partners at local, regional, national, and European level
Obtaining greater value from all categories of procurement expenditure through a corporate procurement strategy and the necessary resources for implementation
Realising community benefits
Stimulating markets and using their buying power creatively to drive innovation in the design, construction and delivery of services.
Themes
Providing leadership and building capacity
Partnering and collaboration
Doing business electronically
Stimulating markets and achieving community benefits
Vision By 2004
Corporate procurement strategy developed, owned by chief executives, members and senior officers
Strategy's implementation regularly measured
Approach to partnering in construction and service delivery set out
Approach to collaboration and new trading powers set out
Appraisal of service delivery models included in Best Value reviews
Staff consulted on employment issues in procurement processes and contracts
2003 Act and 03/2003 Circular built into processes and contracts
Publish a Selling to the Council guide (website)
Ensure corporate procurement strategy is addressing sustainability and equality issues, helps to achieve the community plan and involves the voluntary sector
n Conclude a compact with the local voluntary and community sectors
By 2005
Health checks against National Strategy (single tiers and county councils)
Centres of Excellence involved (districts and upper tiers
Average time from OJEU notice to contract award reduced by 10
Smaller districts collaborating with others for shared services
All councils co-operating regionally via networks of centres of excellence
Appropriate e-Procurement solution implemented
Using government procurement card /equivalent for low value purchases
Progress being measured
Relationship of procurement to community plan addressed
Workforce diversity, equality and sustainability issues addressed
Diverse and competitive supply market encouraged
Sustainability built into procurement strategy, processes and contracts
Concordat for SMEs and voluntary sector compact concluded
Information Memorandum to prospective bidders included in processes
Invitation to bidders to demonstrate effective use of supply chain included
Give bidders option to specify benefits under community plan By 2006
Health checks against National Strategy (districts)
Average time from OJEU notice to contract award reduced by 25%
Accessing an appropriate e-Marketplace Show evidence of service improvement and efficiency gains resulting from better procurement
Have you ensured that procurement helps to achieve the council's strategic goals?
Apply for Beacon Council status?
Consider the vision for procurement - are you achieving savings and cost benefits and procuring jointly with others in innovative ways?

APPENDIX B

Procurement - Improvement/Action Plan

ACTION RESPONSIBILITY OUTCOME

1. Procurement strategy to be prepared and approved by Council. The Strategy to include:-- reference to joint procurement opportunities- links with Council's key priorities and community strategy - project management- sustainability and equality issues(Requirement of the National Procurement Strategy) Full Council /ExecutiveChief Officers Management TeamMember/Officer Procurement ChampionsBusiness Services Manager 1. Corporate format for procurement adopted.2. Early identification of joint procurement opportunities.3. Improved monitoring of major procurement activities.4. Relates procurement activity to Council's Key priorities and Borough's Community Strategy.

2. Appointment of Member and Officer with overall responsibility for procurement. Member & Officer Procurement Champions appointed by the Executive September 2004 1. Identification of procurement champions.2. Clearly identifies responsibility for procurement.

3. Preparation of corporate procurement plan including:-- ten year contracts register, including service currently undertaken in-house- staff procurement training programme- organisational procurement plan Executive Head Legal & Democratic Services, Business Services Manager 1. Enables future procurements to be better planned and progressed.2. Advises potential procurement partners of future major procurements.3. Puts staff training on more organised and planned basis.4. Improved medium/longer term financial planning.
4. Preparation of procurement toolkit/procedural manual for use by all staff and information on website for suppliers including:-production of guide for suppliers about trading electronically with the Council. (Requirement of the National Procurement Strategy) Business Services Manager 1. Provides those involved with procurement, both internally and externally, clear and concise details of the Council's policies relating to it's procurement activities.

5. Look to establish monitoring procedures both to ensure compliance with strategy/procurement plan and to try and identify savings achieved. Executive Head of Legal & Democratic Services, Business Services Manager 1. Will ensure corporate compliance with procedures.2. Will enable Council to measure benefits deriving from improvements to it's procurement practices.

6. Establishment of number of local Key performance indicators on procurement to measure corporate progress including such issues as reduction in number of small invoices. Performance Manager/Business Services Manager 1. To enable progress to be monitored.2. To give better management information.3. Monitor continuous improvement in service delivery.

7. Undertake review of expenditure analysis of both authorities to identify number of procurements which could give early opportunities for savings. Business Services Manager/Service Heads 1. Further joint working, more efficient and economical.

8. Undertake survey of customers/contractors to obtain their views, suggested improvements etc. on the Council's procurement processes from the customer viewpoint. Business Services Manager/Service Heads 1. To maintain and improve 'customer' satisfaction in the procurement process.

9. Introduction throughout the Council of the e- procurement system and its future incorporation with an electronic catalogue system. (Requirement of the National Procurement Strategy)  Partnership Management Board, Business Services Manager 1. Improved efficiency.2. Help to achieve e-government targets.3. Secure best prices from collaborative purchasing.

10. Investigation into the acquisition of a procurement card for low value purchases. (Requirement of the National Procurement Strategy) Exceutive Head of Technical Services/ Business Services Manager 1. Efficiency savings.

11. Establishment of Corporate Procurement Group of Officers with relevant skills to:- - review progress against implementation timetables - evaluate procurement solutions - consider options for joint procurement opportunities - plan procurement training programmes Business Services Manager 1. Utilisation of existing resources to try and resolve capacity issues.

Back to Navigation - Back to the top of this article

Your Comments On This Page

Please tell us how useful this page was. What was good? What was missing or confusing? Telling us will help improve our website. Send a quick message here about this page.